Coventry telephone account
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COVENTRY BUILDING SOCIETY
Type: telephone saver/short-term bond
Description: Coventry Building Society has answered customers’ call for managing savings over the phone with its new telephone saver account. At the same time it has launched a short-term bond savings accounts with rates up to 3.65 per cent AER. The telephone saver account has a 3.25 per cent AER, including a 1.25 per cent AER bonus for the first 12 months, the short-term bond has a 3.65 per cent fixed rate until 31 December 2013.
Colin Franklin, sales and marketing director for Coventry Building Society, said that following the launch of its recent online savings accounts, it had feedback from some customers saying they prefer to manage their savings over the phone rather than online.
He said: “We are therefore launching the telephone saver; an easy access account with a UK-based customer service centre which offers a best buy rate and flexibility for savers.”
Conditions: The telephone saver account has a minimum balance of £500 and maximum investment of £250,000, unlimited withdrawals permitted for a minimum of £500 and minimum deposits of £500 can be made into the account until the 31 October this year. No withdrawals are permitted with the short-term bond.
Verdict: Matthew Rich, IFA of Bath-based Alan Seward Financial Services, said: “The rates are pretty good and a lot of people want to deal with UK call centres, there is a massive demand for that. But like always, these banks are trying to lure people in with a good headline rate that disappears after 12 months. Unless you are going to be very efficient at monitoring the interest rates you are receiving – and most people aren’t – then you are going to lose out in the long term with this type of account.”
Rating: two stars out of five